Now Reading: India revamps bilateral investment treaty to attract investors
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India revamps bilateral investment treaty to attract investors
The finance ministry is reviewing India's Model Bilateral Investment Treaty (BIT) to make it more investor-friendly and will soon seek cabinet approval, economic affairs secretary Anuradha Thakur said on Friday. Speaking at…
The Story in Brief
The finance ministry is reviewing India's Model Bilateral Investment Treaty (BIT) to make it more investor-friendly and will soon seek cabinet approval, economic affairs secretary Anuradha Thakur said on Friday. Speaking at an NCAER event, Thakur said consultations are underway and the model is being updated based on negotiation experience and global practices.
The current model, approved in 2015, requires foreign investors to exhaust domestic remedies for five years before seeking international arbitration. Several countries have found this too restrictive, and few have signed on. Thakur noted investor protection matters more now as Indian outward investment grows. The Times of India reports the revamped treaty may relax the five-year rule.
The Indian Opinion
The narrative that India's BIT scares away foreign capital needs balance. Net FDI hit a record $95 billion last year, even with the restrictive model. Claims of investigative agency overreach driving capital flight were dismissed by Thakur as procedure-driven. The real test: will the cabinet loosen the five-year domestic remedy clause, and how many countries will sign the new version? That number will settle whether India is seen as serious or still hedging.
Sources (2): thehindu.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
